Purpose of Product Labels

Why bother at all with product labels and why bother going to a lot of effort to produce outstanding product labels? The simple answer is that product labels will increase your sales and also increase your profits. Let’s say you sell toothpaste. Then, your customers will have a lot of choice in the supermarket. Why should they choose your brand over another brand?

The answer is because of the label on the toothpaste. Your product labels will therefore have several purposes. The most obvious is to identify the brand name but it is more important than that. Otherwise, if this was the only purpose, then all products would simply have black text on a white label as this would be the least expensive way of identifying your product. Product labels actually increase sales and they do this in three ways.

Firstly, they make it easy for your customers to find your brand. This is where colour plays such a big role. Often, customers can see the colours and actually recognise the product in the shop without even needing to read the label. You are doing your customers and prospects a big favour. They don’t want to spend a lot of time looking for your product. Your labelling plays a big part in this.

Secondly, the product may last inside your customer’s home for a period of time so your customers are exposed to your product and especially its labelling for several days or even longer. In the case of toothpaste, the product will remain in your customer’s bathroom from one week to one month depending on usage. Your customers are exposed to your product and especially its label for considerable time and hence can easily make a new purchase based on the recognition of the label. This is especially important if the shopping is given to an inexperienced member of the family such as the father or the children. If toothpaste is on the shopping list, then your customer will remember your product label and will be more likely to purchase your product again.

Thirdly, most products on the shelves of supermarkets have been advertised while they are on the shelves. The advertising must match the product labels. This is why colour is so important in designing your product labels. All of your marketing, i.e. television, print and point of sale must work together to increase sales.

There is a second purpose to product labels. Not everyone likes to shop quickly. Some of your prospects and customers will like to make a purchase decision very slowly. This is especially the case if it is the first time your prospect has purchased your type of product and also if your product is new to the market place or if you have recently undergone some rebranding. Your product label must inform the customer what your product can do. You need more than your brand name and logo. In order to inform your customers, such things to include on the label are product features and benefits, directions for use, ingredients, origin of the product, contact details of the manufacturer and usually a slogan or a short selling proposition. Even when you are informing your customers and prospects, the labels must still be designed to sell.

Of course, not everyone sells their products in large supermarkets. For example, you may sell jam by the side of the road. The same principles in designing product labels apply but only more so. You must give your customer an opportunity to buy your product again. The most important part of these product labels is that they must provide opportunities for repeat sales. A website and phone number would be critical to make it easy for the customer to buy from you again. This principle also applies to products sold online. You must make label your product in such a way that repeat sales are encouraged. With sophisticated digital label printing technology available today, there is no excuse for not labelling your products effectively.